Export prices for all grades of white rice remained under upward pressure from limited
exportable supplies, fueled by continued strengthening of the Thai Baht. Despite quiet new
order demand, export price continued to increase, as local millers focused on the
government intervention program, leading to less available supplies to exporters. As of Jan.
17, 2005, the government bought around 2.6 million tons of paddy, of which 1.8 million
tons were white rice paddy, and 0.8 million tons were fragrant rice paddy. Currently,
exporters who are fulfilling their outstanding contracts were reportedly suffering from the
upward price pressure from tight supply situation. Also, the Thai Baht strengthened further
to 38.4 Baht/US$, as compared to 39.05 Baht/US$ last Monday. However, trade sources
reported that price difference between Thai and Indian parboiled rice was noticeably
narrowing to around US$ 10/MT, as compared to around US$ 30/MT in the previous to
week.